THE government is eyeing another dollar-denominated bond sale this year in anticipation of further tightening in US monetary policy, the Finance department said.
Asked whether the government is eyeing another dollar bond issuance this year, Finance Secretary Carlos G. Dominguez III told reporters in a mobile message yesterday: “confirmed.”
He said the issuance may happen late in the third quarter or early in the fourth quarter of the year.
Asked why the government is considering a second dollar bond issue this year, Mr. Dominguez said it wants to secure more funds at lower rates in “anticipation of [the] Fed’s moves.”
The US Federal Reserve raised its borrowing rates by 25 basis points in its March meeting, and is eyeing two more hikes this year.
However, the Finance chief said the government has “not yet” determined the possible issue size and the tenor to be offered.
He said proceeds from the second dollar bond issue will likely be used for the government’s infrastructure projects and to fund upcoming debt maturities.
In January, the government sold $2 billion 10-year dollar-denominated bonds, with $750 million allocated to new money investors and quoted at a 3% coupon, and the remaining $1.25 billion switched in a liability management exercise.
The Duterte administration made its first dollar bond issuance in January 2017 after it sold $500 million in new money from 25-year papers at a coupon of 3.7% and swapped the remaining $1.5 billion to lengthen maturities.
The government plans to borrow a total of P888.23 billion this year to fund its budget deficit that is capped at 3% of the country’s gross domestic product.
The Development Budget Coordination Committee last month raised the share of loans to be sourced abroad this year to 35% of overall borrowings from the 26% earlier expected for this year and the 20% set in 2017 as the government seeks to diversify its funding sources.
The government has been active in the offshore market this year. In March, the government raised 1.46 billion renminbi, or about $230 million, in three-year yuan-denominated bonds with a coupon rate of 5%.
Mr. Dominguez earlier said the government is eyeing to tap the Panda bond market as a regular financing option.
Apart from dollar and renminbi bonds, the government is also looking to offer yen-denominated or “Samurai” bonds in September or October, the Finance chief earlier said.
The government is ramping up borrowings as it seeks to spend about P8.4 trillion in infrastructure projects within its term in an effort to boost economic growth to 7-8% in 2022 from the 6.7% recorded in 2017 and the 6.3% average logged in 2010-2015. — Elijah Joseph C. Tubayan
THE TURBULENCE seen across emerging markets is following a similar pattern to a crisis that rocked global trading more than two decades ago — it involved tequila.
In the mid-1990s, US interest-rate increases helped spark a Mexican peso devaluation that fueled capital flight and caused the so-called Tequila crisis. Within a few years, the sell-off had spread to Asia, which became the center stage of the emerging-market crisis, during which currencies were devalued as the region was sent into an economic tailspin. Fast forward to 2018, and history is repeating itself, with a crisis brewing in Latin America as Argentina seeks emergency funding just as the dollar and US bond yields spike.
But this time around, Asia is less vulnerable to contagion, says Macquarie Bank Ltd.’s Nizam Idris.
While the current fears emerging out of Latin America remind him of the so-called Tequila crisis, today “Asian economies are a lot stronger,” said Nizam, the bank’s head of strategy for fixed income and currencies in Singapore. “Current-account deficits are actually smaller, foreign reserves are much larger than before, and currencies are unpegged. The situation today is not entirely the same as compared to 1995.”
He’s not alone. Commonwealth Bank of Australia also sees Asian currencies faring better than their peers elsewhere in the developing world if the crisis emanating out of Latin America intensifies. While there are exceptions — the Indonesian rupiah is more vulnerable than others since it’s one of the few Asian emerging markets that run current-account deficits — the crises that’s exacerbated the sell-off this time around in Argentina and Turkey are signaling that they are more idiosyncratic in nature with less contagion risks.
After erasing almost all of their gains for the year because of a pickup in US inflation and global trade tensions, emerging market assets made a comeback last week. Asian currencies have been the winners, with seven out of the 10 best performers in emerging markets this quarter coming out of the region.
“The one-two punch of rising US rates and dollar appreciation is leading to a rising market risk premium in EM countries whose balance of payments is vulnerable,” analysts at Nomura Holdings Inc. led by Singapore-based Rob Subbaraman wrote in a May 11 report. Asian nations including Thailand, China and South Korea were among those least exposed to balance-of-payment risks in a Nomura study of 20 emerging markets.
Here are the reasons why Asia may fare better after all: CURRENT ACCOUNT
Six out of nine major economies in Asia outside of Japan enjoy surpluses in their current accounts, led by Singapore, Taiwan and Thailand with excesses of more than 10% of gross domestic products. Indonesia, India and the Philippines have shortfalls.
Better current-account balances mean that Asia is better equipped to meet their dollar-denominated payment obligations to their bond holders, according to Andy Ji, a currency strategist at Commonwealth Bank of Australia. ECONOMIC DRIVERS
A two-year rally that drove emerging-market stocks and currencies to the highest level since at least 2007 was supported by economic fundamentals. And Asia still stands out.
Asia’s developing economies are poised to expand an average of 6.5% in 2018 compared with 4.9% for all emerging markets, according to forecasts from the International Monetary Fund. Inflation in Asia, excluding Japan, will accelerate to 2.3% in 2018 compared with a world average of 3.3%, according to surveys of economists by Bloomberg.
And that’s despite the headwinds of tighter monetary policy by the Federal Reserve and rising US yields.
While the Philippines became the latest emerging market to raise interest rates to rein in price gains in a booming economy, both the Bank of Korea and the Reserve Bank of India lowered their own inflation projections last month. China has already cut its reserve requirement ratio twice this year.
“The fundamentals in Asia are better than other regions, while political and geopolitical risks are smaller, too,” Koji Fukaya, chief executive officer in Tokyo at FPG Securities Co. “Gains in US yields are a reflection of strong economic condition there, and Asia benefits from the strong US economy more than other regions.” POLITICS
To be sure, like other emerging markets, Asia also faces political risks with a slew of elections in the next two years, including in Indonesia and India.
A case in point is Malaysia, where voters last week elected Mahathir Mohamad, the nation’s longest-serving premier, as leader in a stunning upset to end the six-decade rule of Najib Razak’s party.
“At a time of growing pressure on emerging-market currencies and bonds, the situation in Malaysia bears careful watching for potential knock-on effects, particularly as rising rates and geopolitical uncertainties remain live in the backdrop,” Eli Lee, head of investment strategy at Bank of Singapore Ltd., wrote in a note. — Bloomberg
CANNES — Jane Fonda, Salma Hayek and Marion Cotillard were among 82 women who made a symbolic walk up the red carpet at the Cannes Film Festival on Saturday, in a demonstration of solidarity for women struggling for a voice in the movie industry.
At the first Cannes festival since the sexual abuse scandals that broke in Hollywood last year, Cate Blanchett, the head of the jury that will award the Palme d’Or, and veteran French director Agnes Varda read out a statement.
“As women, we all face our own unique challenges, but we stand together on these stairs today as a symbol of our determination and commitment to progress,” read part of the statement.
The number of women taking part was the same as the number of films directed by women to have been selected to feature at Cannes in its more than seven-decade history. In the same period, 1,645 movies directed by men have had that honor. — Reuters
VISTA LAND and Lifescapes, Inc. (VLL) is looking into turning 23 existing projects into larger mixed-use developments it calls “communicities,” a top official said.
“We’re looking at about 23 potential areas right now that we want to expand to bigger multi-use areas,” VLL President and Chief Executive Officer Manuel Paolo A. Villar told reporters in a media briefing in Taguig City last week.
Mr. Villar said the projects to be expanded are located in Mega Manila, which pertains to Metro Manila and neighboring provinces of Cavite, Laguna, Rizal, Batangas, and Bulacan, and some provinces outside Luzon such as Iloilo and Cagayan de Oro.
VLL described “communicities” as integrated urban developments combining lifestyle, retail, prime office space, university town, health care, themed residential developments, and leisure components.
The listed property developer known for its affordable subdivision developments across the country said it will opt for joint venture (JV) deals for these mixed-use areas.
“We’re looking to do more joint ventures…. We’re looking to do hundreds of hectares of projects that’s multi-use, probably large residential and we’ll have a commercial area. So all the big JVs will be for mixed-use,” Mr. Villar said.
The company currently has a land bank of 2,642 hectares across the country. Of this, 13% or around 330 hectares is its share in joint ventures.
VLL grew its net income by 13% in the first quarter of 2018 to P2.6 billion, fueled by its residential and commercial leasing businesses. The profit growth was supported by a 12% increase in revenues to P10.1 billion during the quarter.
The company is banking on the strong demand for residential projects to continue boosting its earnings for this year. Its profit target for 2018 is P10 billion, around 10% higher than the P9.1 billion it generated in 2017, while expecting reservation sales to reach P72 billion for the year.
VLL has allotted P45-50 billion in capital expenditures this year, P11.8 billion of which has already been exhausted in the first three months of 2018. It plans to raise around P10 billion through the issuance of bonds in the third quarter to continue funding this capex program.
Incorporated in 2007, VLL develops house and lots and residential high-rise condominiums through its six wholly owned subsidiaries, namely Brittany Corp., Crown Asia Properties, Inc., Vista Residences, Camella Homes, Inc., Communities Philippines, Inc., and VLL International, Inc.
The company also owns 88.34% of listed mall operator Starmalls, Inc. Mr. Villar said the company will be upgrading the Starmalls brand, with plans to refurbish existing malls in the coming years. — Arra B. Francia
By Arra B. Francia Reporter
“LIVABLE COMMUNITY” isn’t exactly what comes to mind when you see the congested spaces in Metro Manila. With land becoming scarcer and real estate prices rising every year, developers would have to set up in other areas if they want to continue building livable spaces for their customers.
For RGV Group of Companies Vice-Chairman Jaime A. Cura, it is the government’s promise to improve infrastructure across the country that’s helping real estate industry players think outside Metro Manila.
Mr. Cura, who headed the board of judges for this year’s PropertyGuru Philippines Property Awards, said property developers are now more decisive to expand in the provinces following the government’s infrastructure program.
“A certain observation is that the aggressive goal of the government to ‘build, build, build,’ in order to make up for the lack and backwardness of the basic infrastructure of our country, has been a vigorous push to the property industry. Developers have become bolder and more decisive about entering out of the highly congested and polluted cities,” Mr. Cura said in a speech during the awards night at Fairmont Makati last week.
He noted that the term livable community — often used as a marketing slogan by industry players — would be nothing but “empty and deceptive promises” unless they find a way to actually build more space for their customers.
“(The infrastructure program will) give developers a fresh start, and the opportunity to show the lessons gained from operating within a less than ideal planning development or the total lack of it,” Mr. Cura said.
Another observation from one of the awarding body’s judges is the effort of companies to develop green and sustainable buildings.
“At least now a lot of the developers are being more conscious about putting in more green into the development so we have not just rainwater collection, not just making sure that they are LEED certified but most of them are actually, that recognition among developers is now top of mind,” Pronove Tai International Chief Executive Office Monique Cornelio-Pronove said in an interview.
LEED, or Leadership in Energy and Environmental Design, is a certification given by the United States Green Building Council that proves a building has focused on five key elements, namely energy efficiency, indoor environmental quality, materials selection, sustainable site development, and water savings.
Ms. Cornelio-Pronove said this puts Philippine developers in step with Asian competitors, since green development is something that the Asian market has been seeing in previous years.
Winners at the 6th annual PropertyGuru Philippines Property Awards:
• Best Developer: Megaworld Corp. Property giant Megaworld was named Best Developer for the third straight year at the PropertyGuru Philippines Property Awards. Receiving the award were Megaworld Senior Vice-President Kevin L. Tan and Chief Operating Officer Lourdes Gutierrez-Alfonso. — MEGAWORLD
• Best boutique developer: Arthaland Corp.
• Special Recognition in CSR: Empire East
• Special recognition in sustainable development: Arthaland Corp.
• Best luxury condo development (Metro Manila): Trump Tower at Century City by Century Properties Group, Inc.
• Best high end condo development (Metro Manila): Portico by Alveo Land
• Best mid end condo development (Metro Manila): The Residences at Commonwealth by Century by Century Properties Group, Inc.
• Best Affordable Condo Development (Metro Manila): Suntrust Shanata by Suntrust Properties, Inc. of Megaworld Corp.
• Best luxury condo development (Cebu): The Residences at the Sheraton Cebu Mactan Resort by AppleOne Mactan, Inc.
• Best high end condo development (Cebu): Grand Residences Cebu by Grand Land, Inc.
• Best affordable condo development (Cebu): Amani Grand Mactan, Cebu by Grand Land, Inc.
• Best housing development (Cebu): Casa Mira South by Cebu Landmasters, Inc.
• Best condo development (resort): Canyon de Boracay Premiere by Canyon Estates, Inc. / G2 Global, Inc.
• Best township development: Iloilo Business Park by Megaworld Corp.
• Best office development (Metro Manila): The Podium West Tower by SM Keppel Land, Inc.
• Best office development (Cebu): Cebu Exchange by Cebu Lavana Land Corp.
• Best BPO office development: Unioil Tower by Exquadra, Inc.
• Best retail development: The Podium by SM Keppel Land, Inc.
• Best hotel development: Twin Lakes Hotel by Global-Estate Resorts, Inc. by Megaworld Corp.
• Best hotel development (Cebu): Dusit Princess- Grand Tower Cebu by Grand Land, Inc.
• Best mixed use development: The Podium complex by SM Keppel Land, Inc.
• Best luxury condo architectural design: The Imperium at Capitol Commons by Ortigas and Company
• Best condo architectural design: Verano Greenhills by Grand Taipan
• Best Condo interior design: The Residences at the Sheraton Cebu Mactan Resort by AppleOne Mactan, Inc.
• Best township architectural design: Uptown Bonifacio by Megaworld Corp.
• Best office architectural design: The Podium West Tower by SM Keppel Land, Inc.
• Best retail architectural design: The Podium by SM Keppel Land, Inc.
• Best Landscape architectural design: The Podium Complex by SM Keppel Land, Inc.
• Best Universal design development: The Podium Complex by SM Keppel Land, Inc.
• Best Green Development: The Podium Complex by SM Keppel Land, Inc.
• Special recognition for Public Facility: Terminal 2 of the Mactan Cebu International Airport by GMR-Megawide Cebu Airport Corp.
• Best Condo Development (Philippines): The Residences at the Sheraton Cebu Mactan Resort by AppleOne Mactan, Inc.
• Philippine Real Estate Personality of the Year: Jose Roberto Antonio, founder and CEO, Revolution Precrafted
A SCREENSHOT from Childish Gambino’s video “This is America.
NEW YORK — A graphic music video by Childish Gambino has racked up more than 100 million views in just over a week on YouTube with its powerful takes on gun violence and racism.
“This Is America” — by actor and recording artist Donald Glover’s edgy alter ego — is a raw take on racism, gun violence and consumer society hit the nine-figure-mark in a week, just behind of global hits such as Adele’s “Hello” (four days) and “Wrecking Ball” by Miley Cyrus (in six days).
The four-minute video begins with a shirtless Glover dancing to soothing rhythms in an empty warehouse and singing “We just wanna party” and “We just want the money.”
Glover suddenly pulls out a handgun from the back of his pants and executes a hooded man sitting in a chair.
A heavier, more foreboding beat drops, and Glover raps “This is America — don’t catch you slipping up.”
“Yeah, this is America,” he says. “Guns in my area.”
Later in the video, Glover guns down an all-black church choir in a sequence some commentators have interpreted as a reference to the 2015 murders of nine black churchgoers by a white supremacist in Charleston, South Carolina.
At several points, children in school uniforms join Glover in his hypnotic dance as violence occurs in the background.
The video, directed by Hiro Murai, ends with a terror-stricken Glover fleeing as from a lynch mob.
One of the clips producers, Ibra Ake, told NPR: “there’s a communality there and people can relate to a lot of that stuff. I don’t think we are as cerebral or as calculated as people think. Our goal is to normalize blackness.”
Glover’s video follows an appearance over the weekend on the hit comedy show Saturday Night Live.
The 34-year-old actor and musician is to appear as Lando Calrissian in Solo: A Star Wars Story being released on May 25. — AFP
THE SECURITIES and Exchange Commission (SEC) will be issuing guidelines for the issuance of ASEAN (Association of Southeast Asian Nations) Green Bonds in the country for the purpose of funding green and sustainable projects.
In a draft memorandum posted on its website for public comment, the SEC said it is coming up with the guidelines following the need to identify green finance standards to ensure sustainable growth in the ASEAN region.
The ASEAN Capital Markets Forum (ACMF) describes ASEAN Green Bonds as bonds and sukuk (Islamic bonds) that comply with the ASEAN Green Bond Principles. These principles pertain to voluntary process guidelines issued by the International Capital Market Association.
The proceeds of ASEAN Green Bonds shall be “exclusively applied to finance or refinance, in part or in full, new and/ or existing eligible Green projects,” according to an ACMF report.
Eligible green projects are those that address key areas of environmental concerns, providing clear environmental benefits which will be assessed and quantified by the issuer.
Section 8 of the preliminary guidelines lists down the following as eligible green projects:
1. renewable energy;
2. energy efficiency;
3. pollution prevention and control;
4. environmentally sustainable management of living natural resources and land use;
5. terrestrial and aquatic biodiversity conservation;
6. clean transportation;
7. sustainable water and waste water management;
8. climate change adaptation;
9. eco-efficient and/or circular economy adapted, production technologies and processes; and
10. green buildings which meet regional, national, or internationally recognized standards or certifications.
Fossil fuel power generation projects are excluded from the list of eligible green projects.
Meanwhile, issuers who are eligible to apply for green bonds must be a member of the ASEAN countries. A non-ASEAN issuer may also issue such securities as long as the eligible green project is located in any of the ASEAN member-countries.
Following the issuance of the green bonds, issuers must provide regular reports to their investors regarding the net proceeds of the funds. Under Section 17, issuers are recommended to give qualitative performance indicators and quantitative performance measures.
Quantitative performance measures include a project’s energy capacity, electricity generation, greenhouse gas emissions reduced or avoided, the number of people provided with access to clean power, the decrease in water use, reduction in the number of cars required, or other such reasonable performance measures.
The process for project evaluation and the use of proceeds shall be disclosed on a website designated by the issuer, as per Section 15 of the draft guidelines.
Should the capital raised be used for refinancing, Section 20 states that issuers must provide an estimate of the share of financing and refinancing. They must also clarify which investments or project portfolios may be refinanced, as well as state the expected look-back period for refinanced green projects to the extent that is relevant.
The SEC’s Markets and Securities Regulation Department is accepting comments for the draft rules until May 21. The rules will supplement the requirements under Sections 8 and 12 of the Securities Regulation Code, which details rules on the issuance of securities. — Arra B. Francia
THE ERAWAN Group PLC, Thailand’s leading hotel investment company, is ramping up the expansion of its Hop Inn hotel chain in the Philippines this year.
The Erawan Group last week opened its third Hop Inn Hotel in the country, and plans to open two more this year.
“We have two more coming up this year: one in Alabang and one in Tomas Morato. Outside Metro Manila, we also have a big project in Cebu which is Hop Inn and Holiday Inn. This will open in 2020,” Petch Krainukul, the newly appointed president of The Erawan Group, told reporters after the ribbon-cutting ceremony held at the hotel last May 7.
Hop Inn Hotel Alabang is expected to open in July, while Hop Inn Hotel Tomas Morato will open in December 2018.
The company is partnering with the Intercontinental Hotels Group to build the dual-brand hotel development to be located in Cebu City’s IT Park.
Mr. Krainukul said the company aims to have 10 to 12 hotels by 2020.
“Philippines is our second home. This is our biggest investment outside Thailand… I think the country’s economy is growing very well, the middle class income is increasing as the economy is growing, and we’re seeing that there’s a gap in this segment that we think we can serve,” he said.
The Hop Inn Hotel Aseana is the third one to open in the Philippines, after properties in Ermita, Manila and Poblacion, Makati City.
Hop Inn Hotel Aseana caters to both corporate and leisure travelers, as it is located at the heart of Aseana City in Parañaque and a few minutes away from Ninoy Aquino International Airport, malls and casinos.
The 14-storey hotel offers 196 rooms. Each standard room, around 16 square meters (sq.m.), is equipped with staple amenities including air-conditioning, high-speed Wi-Fi connection, cable TV, hot and cold shower, a workstation, and a hair dryer. Free parking is available as well.
Hop Inn Hotel Aseana also offers deluxe rooms. A deluxe room, which is around 22 sq.m., has a queen bed, a spacious bathroom, a sofa, as well as coffee and tea.
“We opened December 2016 for the first time in Ermita, and last year in Makati in August. We did quite well,” Mr. Krainukul said.
He noted that they received good feedback from both local and foreign guests since the first Hop Inn hotel was opened in the Philippines.
“I think the key of the Hop Inn brand is we provide the basic needs that customers want. The reason we don’t offer more or too much is in order for us to keep the rate affordable for everyone. It is clean, comfortable, safe, and reliable,” Mr. Krainukul said.
The Erawan Group currently owns 52 hotels ranging from luxury to budget. The company has partnerships with hotel operators such as Hyatt, Marriot, Accor, and Starwood.
According to Mr. Krainukul, the group started its own brand Hop Inn in Thailand about four years ago. To date, there are more than 30 Hop Inn Hotels in Thailand. — Romsanne R. Ortiguero
EIGHT THOUSAND fans cheered as 10 local and four international YouTube “creators” gathered at the 4th YouTube FanFest Manila 2018 at the World Trade Center on May 11.
The YouTube FanFest — which began in 2014 and first came to Manila in 2015, drawing an audience of about 3,000 — is a one-day variety show where YouTube content creators showcase the skills and talents that made them popular on the online platform. This year’s lineup featured beauty and fashion vlogger Janina Vela, singer/songwriter Renee Dominique, the Merrell Twins who are actresses and dancers, travel vlogger Wil Dasovich, cosplayer Alodia Gosiengfiao, beauty vlogger Michelle Dy, entertainer Pamela Swing, hip hop dancer and choreographer Matt Steffanina, dancer Ranz Kyle and entertainer Niana Guerrero, singer/dancer AC Bonifacio, guitar player Sungha Jung, dancer D-trix, and comic and singer Mikey Bustos.
The FanFest first came to Manila thanks to the online engagement of fans posting with the hashtag #BringYouTubersToMNL. “It was a massive kind of movement that we had to respond to it. So that was what really brought it here, combined with the fact that it raised the awareness that there was a combination of incredibly intense and involved fan base, as well as, great creators who had great stories,” YouTube’s Director of Global Creator & Artist Development Chris Schremp told BusinessWorld shortly after a press conference at last week’s FanFest.
The show began with this year’s host Janina Vela’s performance of an original composition, “Unstoppable.” Ballads by Renee Dominique, Wil Dasovich and Alodia Gosiengfiao’s dance challenges, a dance number by beauty vlogger Michelle Dy, and Sungha Jung’s guitar solo were among this year’s performances.
The show has evolved to bring in more local talents every year.
“In the early days, there was a lot of non-Filipino talent here on the main stage. The biggest change for us is there is a lot of local talent [this year]. Filipino creators who started out small [and] who have grown to be big are now the ones hosting on the main stage,” Mr. Schremp said, adding that participating creators at the event are chosen based on online success, fanbase, and content diversity.
“You can tell that they started out just wanting to tell that story. Success has come because they’re so authentic.” Mr. Schremp said. “I think that they’re content is broadly appealable.”
As for future plans on the digital platform, Mr. Schremp said new features such as community tools on YouTube will be further developed for engagement between creators and their fans, as well as alternate monetization tools to generate revenue among content creators. — Michelle Anne P. Soliman
THE GOVERNMENT can support the growth of the country’s geothermal industry by helping with the upfront risk that goes with the development of the indigenous energy resource, the president of Energy Development Corp. (EDC) said.
“Globally, geothermal has always grown in government’s hands — whether it’s Costa Rica, Mexico… because government has unlimited balance sheet,” Richard B. Tantoco, EDC president and chief operating officer, told reporters.
“So if government could do anything to help, not just us but any of the 13 players that have concession areas, it’s to help with that upfront risk,” he added.
Mr. Tantoco made the statement in response to a request for comment on the country’s standing in global geothermal power generation, which has slipped a notch lower this year after being overtaken by Indonesia in the second spot. The US remains the world’s biggest.
“FiT (feed-in-tariff) will always help because you have a PPA (power purchase agreement) with the government. But really, if you look at geothermal — historically and worldwide — the biggest issue… is in the upfront risk,” he said.
EDC is the country’s largest geothermal company, delivering 1,457.8 megawatts (MW) of clean and renewable energy.
In Latin America, Mr. Tantoco noted two lending institutions have an exploration fund that offers a “grant-to-loan” program.
“So I’m going to give you money. It’s free if you drill. If the well doesn’t produce, you don’t owe me anything. It’s a grant. If it produces and later on it becomes a commercial project, you pay me back. It becomes a loan,” he said.
He said a similar policy could be adopted by the Philippines to spur the growth of the local geothermal industry.
Mr. Tantoco said a few weeks ago, EDC executives had a meeting with one of the top officers of the World Bank group ahead of its issuance of a policy recommendation on renewable energy.
He said EDC representatives also had a meeting with the International Finance Corp. to offer their insights on how to expand the renewable energy industry.
“Their comment was: ‘We see your company as a beacon. You’re like a shining example. What can we do to support you.’ We said: ‘We want you to unleash risk financing and work with the government to simplify the permitting system,’” he said. — Victor V. Saulon
By Patrizia Paola C. Marcelo, Reporter
PLDT, INC. is not interested in partnering with rival Globe Telecom, Inc. for the creation of an “independent” cellular tower company.
PLDT Chairman, President and CEO Manuel V. Pangilinan said the company does not see any benefit or need to share any of its network assets.
“At this time, we don’t see any benefit or need to share any of our existing network elements, including our towers,” Mr. Pangilinan said last May 10.
PLDT Chief Corporate Services Officer Ray C. Espinosa said any possible sharing for new towers will depend on the network rollout of PLDT.
“The decision whether we will unload our own towers is actually more financial question for us and a business question as well. Financially I don’t think we need to unload these towers, which I understand Globe said they needed to because of their own unique financial situation, so our situation is not the same in respect of the driver for moving our towers to a third party,” Mr. Espinosa said.
“New towers, we’re willing [to adopt one tenant] but it must be towers where our network is being rolled out. We cannot just base our stations in areas where Globe says this is where we build up the [tower]. It has to be consistent with our network design and network rollout. But obviously we can if it saves us cost, why not?” he added.
Globe last month said it is open to partnering with or being in a consortium with rival PLDT for the creation of an “independent” cellular tower company.
Globe President and CEO Ernest L. Cu had said that working with PLDT and other future players would reduce capital spending for new cell sites.
Globe announced in February that it was in talks with certain parties to form an independent cell tower company and divest some or all of its tower assets, to help speed up the build and deployment of cellular towers in the Philippines, and as part of its network expansion and optimization plan.
Globe General Counsel Froilan L. Castelo had that an independent tower company will help reduce the difficulties in getting permits for the construction of cell towers. Both Globe and PLDT have cited the difficulties in getting permits as the barrier for the construction of more cell sites that will improve coverage.
The country only has 16,000 cell sites, serving a population of more than 100 million people.
The government proposed in January a “common tower policy” where independent firms would build cell towers which would then be leased to PLDT or Globe.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.
ETON PROPERTIES Philippines, Inc. (EPPI) is looking to introduce pocket retail developments and co-working spaces, as the real estate arm of the Lucio Tan Group aims to boost its recurring income from commercial and office developments.
In a statement, EPPI said it is planning pocket retail developments in Ortigas, Quezon City, and San Juan, as well as a mixed-use commercial development along Roxas Boulevard in Manila.
The property company will also start offering flexible co-working offices at the upcoming NXTower I in Ortigas central business district.
Last year, EPPI spent P4 billion in capital expenditures, up 14% from the P3.5 billion spent in the year prior. Among its projects were the West End Square in Makati City, Centris Cyberpod Five and expansion of Centris Walk in Quezon City.
It also broke ground for NXTower I, a 30-storey office building, and Eton City Square, a commercial strip in Eton City in Sta. Rosa, Laguna.
During its recent stockholders’ meeting, EPPI officials said that “expanding the company’s footprint, streamlining its operations, and strengthening its commitment to exceptional customer service will sustain the market’s interest in its various projects and steer the company forward.”
EPPI’s net income reached P348 million in 2017, slightly lower than the P390 million recorded in 2016 due to a drop in residential property sales.
However, rental revenues grew 9% to P1.4 billion last year, from P1.3 billion in 2016. Rental revenues accounted for 62.2% of EPPI’s total revenues, as the lease contracts were renewed at higher rates for the business process outsourcing offices.
